TNAG-0147-FCO40-183-Exports-of-textiles-to-United-States-of-America-1969 — Page 93

(B) THERE ARE DANCERS THAT, JUST AS THE JAPANESE WERE INDUCED BY THE AMERICANS TO SUPPORT THEIR COTTON PROPOSALS IN 1961 BY A PROMISE THAT HONG KONG WOULD BE CUT BACK AND THE HONG KONG CUT WOULD BE ADDED TO THE JAPANESE QUOTA, SO THEY MAY BE TEMPTED SY SUGGESTIONS THAT IT WILL BE TO THEIR ADVANTAGE TODAY TO SECURE RESTRICTIONS ON COMPETITIVE GROWTH OF HONG KONG (AND TAIWAN AND KOREA) IN MM F, WHERE JAPANESE HAVE A SUBSTANTIAL LEAD. (WE HAVE ALREADY REMINDED THEM HERE, AS WE DID IN 1961 ALSO, OF THEIR INDIRECT INTEREST IN OUR EXPORTS THROUGH THE JAPANESE FABRIC WE USE.)

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3.

I TEND TO THE VIEW THAT OUR LINE SHOULD NOW BE TO FOLLOW THE E E C AND UK SUGGESTION IN THE COTTON TEXTILES COMITTEE, 1.E., THAT, IF THERE IS A PROBLEM, IT SHOULD BE DISCUSSED IN THE GATT. IF GENERAL AGREEMENT EMERGES IN THE GATT THAT SOMETHING MUST BE DONE TO MEET THE AMERICAN PRESSURE, I BELIVE THAT AN EXTENSION OF THE C T A TO INCLUDE SOME OR ALL COTTON-M M F BLENDS (WITH COMBINED QUOTAS) WOULD BE PREFERABLE TO A SEPARATE C T A- TYPE ARRANGEMENT FOR OTHER FIBRES (WITH SEPARATE QUOTAS) EVEN THOUGH THE LATTER UNDERLINE NEXT WORD MIGHT PROVIDE A BETTER

CHANCE OF IMPROVED PROVISIONS (INCLUDING IN PARTICULAR A MODIFICATION OF IMPORTING COUNTRIES RIGHT UNDER THE C T A TO APPLY RESTRICTIONS IN CERTAIN CIRCUMSTANCES).

4

.IT IS, I BELIEVE, VERY DESIRABLE TO MAINTAIN THE UNIQUE NATURE

OF THE C T A AND TO AVOID THE DANGER OF PROLIFERATION OF SUCH

ARRANGEMENTS,